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  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/12/2012

Mexico - Tax provisions in 2013 budget 

December 12: Mexico’s new government presented a 2013 budget plan for approval that includes modifications to certain tax provisions.

Newly inaugurated President Enrique Peña Nieto on 7 December 2012 presented Mexico’s budget for 2013—one that generally does not propose reforms to the tax laws, but that includes modifications to certain existing tax provisions. The new government also will conduct a comprehensive review of the tax system.


Mexico’s congress must review and approve the budget or call for a special session if necessary, by 15 December 2012.

Proposed changes to certain existing tax provisions

  • Permanent establishment for maquiladoras: A foreign resident would not be considered to have a permanent establishment in Mexico when conducting maquila activities through companies operating under a maquila program as authorized by the ministry of the economy (Secretaría de Economía) as long as they are not related parties.
  • Derived financial operations: The income tax exemption for derived financial operations would be clarified for it to apply when a part of the swap operation has been referenced to the interbank equilibrium interest rate (Tasa de Interés Interbancaria de Equilibrio—TIIE) or to the exempt titles of the tax law.
  • Personal deductions: Individual taxpayer’s medical expenses and school transportation costs would be allowed as personal deductions, provided that the corresponding payments are made by check, transfer of funds, credit/debit card, etc.
  • Income tax rate: The income tax rate for individuals and companies (persona moral o física) would continue to be imposed at 30%, (instead of a planned reduced rate of 29%) starting in 2013.

The budget also contains modifications to the IETU (single rate business tax) concerning:


  • Information reporting: The information reporting requirement for the IETU would continue.
  • IETU credit: An IETU credit for taxpayers having deductions greater than income would not be available as a credit to offset income tax, but would be available for offsetting against the IETU for subsequent years.

Read a December 2012 report (Spanish) [PDF 276 KB] prepared by the KPMG member firm in Mexico: Paquete Económico 2013




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